Beau Eckstein

Published on 27 de janeiro de 2015

beaueckstein.com.

beaueckstein.com

How to Invest in First Trust Deed Loans:

6 Categories of information for Trust Deed Investors:

6. Loan Servicing

I. PROPERTY

- Has to be worth a certain amount relative to the property that secures the trust deed investment.

- check both the comparable sales and the comparable listings in the area

- Sources for lists of sales

o title insurance companies

o county recorders

o real estate brokerages

- Title Company

o Actual printout of comparable sales from the provider

o Some investors obtain this

- Get independent opinions about property, other than from the person offering the trust deed investments to check if the collateral is saleable

II. California Title Insurance / Condition of Title

- can give you protection against liens you’re unaware of, incorrect ownership and a host of other problems

- always obtain and read the actual title insurance policy as there are many important details with title insurance

- learn the difference between a preliminary title report and an actual policy of title insurance.

III. Borrowers

- Reason why some people with so much equity pay a higher rate when bank rates are lower is because Banks dont make loans just because theres lots of equity. Banks, mortgage bankers, credit unions and all the other “institutional lenders” require

o Credit

o documented income with likelihood of continuance

o verification of assets

o compliance with a host of banking rules and laws.

- There are many good borrowers who dont meet all those requirements

- Aspects being considered:

o Credit — credit report and related credit information can provide valuable

 proof of gross income and leases

 invoices

 contracts

o Purpose/Plans/Projections

 analyze what the purpose of the loan

 the borrower’s future plans

 projections they have for their finances and the property

IV. The Transaction

- Be sure that the right disclosures and documents were used and that applicable laws were followed.

 Non-owner occupied — fewer laws

o Leased — if a property cant be sold, it can be leased out until better times.